Lebanese Eurobonds and US Treasuries Posted Positive Results this Week
| 29/09/2016 | 22/09/2016 | Change | Year to Date | |
| BLOM Bond Index (BBI)* | 103.31 | 102.68 | 0.61% | -0.77% |
| Weighted Yield** | 6.36% | 6.51% | -2.30% | 4% |
| Weighted Spread*** | 550 | 558 | -1.43% | 28% |
| 29/09/2016 | 22/09/2016 | Weekly Change | |
| BBI | 103.31 | 102.68 | 0.61% |
| JP Morgan EMBI | 771.7 | 773.44 | -0.22% |
| 5Y LEB | 6.15% | 6.38% | |
| 10Y LEB | 6.81% | 6.91% | |
| 5Y US | 1.12 | 1.18 | |
| 10Y US | 1.56 | 1.63 | |
| 5Y SPREAD | 503 | 520 | |
| 10Y SPREAD | 525 | 528 |
The Lebanese Eurobonds Market saw an improved demand this week, as shown by the BLOM Bond Index (BBI), which added 0.61% to 103.31 points. Hence the BBI outperformed the JP Morgan Emerging Markets’ Bond Index which witnessed a 0.22% fall over the past week to 771.7 points.
Demand for Lebanese Eurobonds maturing in 5Y and 10Y grew over the week. The Lebanese Eurobonds maturing in 5Y and 10Y saw their yields drop from last week’s 6.38% and 6.91% to 6.15% and 6.81% this week, respectively.
In the US, demand for treasuries increased, as investors were expecting borrowing costs to rise, before Fed Chair Janet Yellen’s speech. Yields on the US treasuries maturing in 5Y and 10Y fell from 1.18% and 1.63%, to 1.12% and 1.56%, respectively, this week.
The spread between the yields on the 5 Year and 10 Year Lebanese Eurobonds and their US comparable narrowed over the past week from 520 bps and 528 bps to 503 bps and 525 bps, respectively.
5 Year Credit Default Swaps, Mid-Prices (in basis points)
| 29/09/2016 | 22/09/2016 | |
| Lebanon | 485 | 478 |
| KSA | 164 | 148 |
| Dubai | 165 | 146 |
| Brazil | 275 | 268 |
| Turkey | 266 | 245 |
